Reporting statutory employee income Link to W-2

[susan-honan-ak]

I can't find the screen to link my Schedule C to a W-2

[MichaelDC]

Do you have a Box 13 Statutory Employee checked when you entered the W-2? If it is checked on your physical W-2, then see the information below. If you accidentally checked it when entering the information, go back and uncheck it.

If you still have trouble, delete the W-2 and redo it.

Statutory employees are a very special designation and have their own special rules. If you are a statutory employee, you can claim certain business-related expenses on Schedule C instead of Schedule A. This means you get a bigger tax deduction than traditional employees.

Statutory employees are somewhere in between independent contractors and regular employees. Most people are regular employees - they work for an employer and the employer says what job will be done and how to do it.

Statutory employees have been declared employees under federal tax laws, but are independent contractors under common law. These workers are usually working salespeople or have commission-based jobs.

The information from the W-2 has to link with your Schedule C

1. In TurboTax Self-Employed Online, go to Wages & Income and enter your W-2.
2. Ensure that Box 13 "statutory employee" is checked. 
3. Answer the questions on the subsequent screens until you get to:
4. "Any Related Business Expenses?" Click "Yes". 
5. Go through the interview questions. 
6. Your W-2 Income is now linked to Schedule C. 

[Ma1004]

I can't find the screen to link my Schedule C to a W-2

[JohnB5677]

On the screen where you entered your W-2 hit Continue.

1. There will be a series of questions and it will come to 
2. BOX 13 on W-2
3. There are several options to choose from
4. Next screen Do you have any business expenses to this income?
5. Answer YES
6. It will ask for the description of your business
7. This will link you to your Schedule C

[Andrew418]

Thank you. I did what you suggested but I’m still getting the same error. It’s telling me that W2 Statutory cannot be on the same Schedule C as other business income and I either need to remove any amount entered (it forces me to put an amount, though) or unlink the W2.

[ThomasM125]

You must have another schedule C in your program. Maybe you entered a form 1099-M? You need to link the W-2 statutory employee income to a separate schedule C.

I would try deleting the W-2 entry first.

If you don't have any small business income, see if you can find the small business entry the program created for your statutory business and delete it. You can delete a schedule C by following these instructions:

1. Find the Tax Tools option on your left menu bar and click on it

2. Click on Tools

3. Find Delete a Form and click on it

4. Look for schedule C in the list of forms and click on the option to delete it

Then, once you have the Schedule C out of your program, put the W-2 entry back in. It should create a schedule C and allow you to enter the business expenses on it.

[GFasolt]

I have deleted my W-2 and re-imported, confirming that the Statutory Employee checkbox is NOT checked (only Retirement Plan is checked).  Still, Statutory Employee is checked on my Schedule C for Form 1040.  I have only one W-2; therefore, I am at a loss as to how to correct this. Please help.

[JohnW222]

I would suggest deleting the W-2 again and not re-importing it, then deleting your Schedule C. 

Then, input the W-2 manually, and start over with the Schedule C.

[Kenneth Jonker]

I didn't enter a W-2

[PaulaM]

If you have already filed your return and need to add a W-2, then you will need to amend your return. But wait until the original return is fully processed and you have either received your original refund or paid the taxes due.

Please see this link for amending instructions.